Portugal

Quick Facts

• Tax residency threshold: 183 days in any 12-month period, or a habitual home available in Portugal
• What counts: Any day with an overnight stay generally counts toward presence
• Consequence: Once resident, worldwide income is taxed in Portugal
• Common visas: D7 (passive income/residency), D8 (Digital Nomad)

Residency Rules Explained

• You become tax resident if you spend 183+ days in any 12-month period or maintain a habitual home in Portugal with intent to use it as your main residence.
• Presence generally includes overnight stays; residency starts from the first qualifying day.
• Special rules apply to certain public servants and transport crew, but most expats rely on the main 183-day or habitual home tests.

Visa vs Tax Residency

Key Dates

• Tax year: January 1 – December 31
• Tax filing deadline: April 1 – June 30 (online submission)
• 183-day clock: Rolling 12-month period that overlaps the tax year

Common Pitfalls

• Assuming a D7/D8 visa prevents tax residency before 183 days — a habitual home can trigger it sooner.
• Miscounting days or forgetting overnight stays.
• Signing long leases or buying property and claiming it’s “not a habitual home.”
• Failing to obtain a NIF or register an address early.
• Ignoring reporting obligations for foreign income.

Before You Reach 183 Days

• Track your days carefully with DayVA or similar tools.
• Avoid creating a habitual home (e.g., open-ended leases) if you intend to remain non-resident.
• Keep primary ties outside Portugal if you wish to retain non-resident status.
• Review visa terms vs. tax obligations before staying long-term.
• Prepare your NIF and documentation early if residency is expected.

Offshore & Expat Considerations

• IFICI regime (replacing NHR): Offers a 20% tax rate for qualifying innovation and scientific roles.
• Foreign income: Residents are taxed on worldwide income but may claim double-tax relief under treaties.
• Reporting: Foreign bank accounts and overseas income must be declared annually.
• Wealth tax: None, but higher-value property may incur an additional municipal property tax (AIMI).
• Administration: Visa-to-permit processing is now handled by AIMA; initial visas are valid for 120 days.